Tax-Haven Subsidiaries Are Typically Established in a Country That Can

question 62

Multiple Choice

Tax-haven subsidiaries are typically established in a country that can meet the following requirements:

• A) a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm.
• B) the facilities to support financial services, for example, good communications, professional qualified office workers, and reputable banking services.
• C) a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders.
• D) all of the above

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Definitions:

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Discontinuous Innovation

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